Richard James and Betty James invented the slinky in 1943. Richard James was a naval engineer trying to develop a meter designed to monitor horsepower on naval battleships. He was working with tension springs when one of the springs fell to the ground. He saw how the spring kept moving after it hit the ground and an idea for a toy was born.

Richard remarked to his wife, "I think I can make a toy out of this." Richard then spent the next two years figuring out the best steel gauge and coil to use in making the toy and Betty James found a name for the new toy after discovering in the dictionary that the word "Slinky" is a Swedish word meaning traespiral; sleek or sinuous.

The Slinky was successfully demonstrated at Gimbel's Department Store in Philadelphia, Pennsylvania during the 1945 Christmas season and then at the 1946 American Toy Fair. Richard nervous at the first demonstration of his toy convinced a friend to attend and buy the first Slinky. However, this turned out to be unnecessary as 400 Slinkys were sold during the 90 minute Gimbel demonstration.

Richard and Betty James founded James Spring & Wire Company with $500 dollars to mass produce their creation; and later founded James Industries in 1956. Today, all Slinkys are made in Hollidaysburg, Pennsylvania using the original equipment designed and engineered by Richard James. Each Slinky is made from 80 feet of wire. Over a quarter of a billion Slinkys® have been sold worldwide.

Around 1960, Richard suffering from a mid-life crisis left his wife, six children, and Slinky Empire to join a religious order/cult in Bolivia. Betty James then took over as CEO of James Industries. Betty rescued the company from the debts left by her husband's generosity to his religion. She moved the company to its current Hollidaysburg location from Philadelphia and began an active advertising campaign complete with the famous Slinky jingle (see top of page). Richard James died in 1974.

Betty James also replaced the original Slinky material of blue-black Swedish steel with silver colored American metal. She added other Slinky toys: Slinky Jr., Plastic Slinky, Slinky Dog, Slinky Pets, Crazy Eyes (glasses with Slinky-extended fake eyeballs) and Neon Slinky. The Slinky brand was sold in 1998 to Poof Toys.

Betty James of James Industries, creator of the classic Slinky toy, was inducted into the Toy Industry Hall of Fame in 2001.